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Huawei Acquiring Nokia or Not

Jun 19 2013, 5:48am CDT | by , in News | Misc

Huawei Acquiring Nokia or Not

The Chinese network and smartphone manufacturer, Huawei is keeping its options open. The chairman, Richard Yu spoke of how his conglomerate liked to keep an “open-minded” approach regarding a possible acquisition of Finnish giant, Nokia.

Being at #3 in the world market for smart phones, the Chinese Huawei Co. is eyeing Nokia in its quest to become #1. Right behind Apple and Samsung, this Super Sino-organization is looking for alternative paths to growth and success. According to the Financial Times, the question before us is that will such a day dawn when a Nokia Lumia smart phone will be manufactured and sold by Huawei? It is a possibility although a remote one. For now Nokia has declined to add any commentary from its side. It is playing hard to get in this game of cat and mouse.

Meanwhile, Richard Yu has declared that if the company is interested in any way he would be glad to arrange a merger or takeover. The synergistic effect of both Nokia and Huawei working together to bring the world the best will go well with the target audience. Yu especially spoke of how an open-minded approach was ideal. Nokia is currently in dire straits. It has been trying to keep profits from dwindling. However, it is a losing game. Among its most recent innovations are the Lumia 925 and Lumia 928. These are feeble attempts to regain the lost position it once occupied on the world stage. Yu went on to state that the Windows Phone by Nokia is quite weak and that it wouldn’t stand a chance against stronger competitors.
 
However, despite Yu’s comments and advances towards Nokia, there have been indications that maybe all that warmth and love have gone cold. The vice president for Huawei has denied all reports of a possible acquisition by saying that the company has no such plans as reported by Reuters today. This is strange since two people of the same company are spouting radically different rhetoric. Meanwhile, Nokia’s shares in the worldwide market rose by 12% thanks to the news of a possible acquisition. But that won’t make much of a dent in the smart phone universe.

The fact is that Nokia has suffered after sales of its handsets plummeted due to shifting interests and changing trends. Apple and Samsung touch screen models have become way more popular than any of Nokia’s products. It appears to be a case of excess on one side and dearth on the other. While Huawei is blossoming into its prime, Nokia is in pieces and must either pick itself up or give up and sell ownership rights to the highest bidder.

Image Credit: Getty Images

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